What is a Body20 franchisee prohibited from doing with the Proprietary Information?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not, nor will you permit any person to, use or disclose any Proprietary Information (including without limitation all or any portion of the Manuals) to any other person, except to the extent necessary for your professional advisors and your employees to perform their functions in the operation of the Studio.
You acknowledge that your use of the Proprietary Information in any other business would constitute an unfair method of competition with us and our franchisees.
You will be liable to us for any unauthorized use or disclosure of Proprietary Information by any employee or other person to whom you disclose Proprietary Information.
You will take reasonable precautions to protect the Proprietary Information from unauthorized use or disclosure and will implement any systems, procedures, or training programs that we require.
At our request, you will require anyone who may have access to the Proprietary Information to execute non-disclosure agreements in a form satisfactory to us that identifies us as a third-party beneficiary of such covenants with the independent right to enforce the agreement.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees face specific restrictions regarding the use and disclosure of Proprietary Information. Body20 franchisees are prohibited from using or disclosing any Proprietary Information to any other person, except when it is necessary for their professional advisors and employees to perform their duties related to the operation of the Body20 studio. This includes, but is not limited to, the contents of the manuals provided by Body20.
The FDD emphasizes that using Proprietary Information in any business other than the franchised Body20 studio would be considered an unfair method of competition against Body20 and its other franchisees. Franchisees are also held liable for any unauthorized use or disclosure of Proprietary Information by their employees or anyone else to whom they provide access.
To safeguard Proprietary Information, Body20 franchisees must take reasonable precautions to prevent unauthorized use or disclosure. This includes implementing any systems, procedures, or training programs that Body20 requires. Additionally, Body20 can request franchisees to have anyone with access to Proprietary Information sign non-disclosure agreements that specifically identify Body20 as a third-party beneficiary, granting Body20 the right to enforce the agreement directly. These measures are in place to protect Body20's confidential business information and maintain a competitive advantage.